From the Financial Times this weekend

Solo Oil , which is chaired by David Lenigas, rose 15.4 per cent to 0.75p on talk it was close to announcing its first deal.

I'm on board this morning..good story developing here (imho) ... onwards and upwards... anyone else in ?

I meant my Glencore shares. Rising food and commodity prices will move it to £4 by year end IMO.

ahoj, interesting i will keep an eye on them,doubt it will double but could go on
a good run i think and xtrata deal looks tasty.

glen,i dont know if you look at other forums but there is alot of talk today that
solo and aminex could be farming out tanzania to anadarko petroleum.

Defo interesting as they major gas player in next door block :-)

something is defo stirring here guys,more nice buys coming

jackson i think this is set up nicely for next week,chances are they will put
some news out on canada imvho

jazz no i not heard that but sounds interesting

Dont know if you seen the Ceo video on youtube as he sounds a very
confident man.Something positive will be announced on tanzania shortly
im sure.

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That's quite an interesting video clip and pretty much convinces me that even with a farm-in agreement, the sp isn't going anywhere in the near future. He says that two new wells will be drilled in Tanzania next year and also that the 25Km of pipework infrastructure will be completed by the new funds from a new partener. So that would take SOLO ownership down to c12% and the new cash is already spoken for. The canadian venture will produce much needed revenue, but that looks like it will only be working capital and debt reduction. Just my opinion and have been watching this for a while (tempted by a 0.33p sp which only has to reach 0.66p for my money to double), but much better investment prospects elsewhere.

harrycat i dont think you have delved deep enough on their tanzania play they
share with aminex.For a company the size of solo to effectively get a free carry
on an asset like tanzania should not be overlooked.The oil majors are currently
chomping at the bit to get into tanzania and mozambique and the recent news
that the tanzania government have suspended the issue of new oil and gas blocks
in the country only makes the Ntorya discovery more valuable. A farm out deal
could fetch a hefty premium to both solo and aex swelling the coffers yet still
retain them a decent percentage on a totally de-risked basis.

This was way oversold recently and moved down to the placing price as always
happens,but with whats going on here on both their key assets i think you will
see a nice bounce coming ( all imvho of course )

good luck

Another positive start today and looks like its about to tick up

large LOL.,.

Oil barrel conference report just out this morning,well worth a read

http://oilbarrel.com/news/conference-report-1-solo-oil-looks-to-leverage-its-capital-in-tanzania-and-canada-while-a-slimmed-down-roxi-petroleum-reports-rising-production-and-exciting-new-drilling-plans

Conference Report 1 - By Amy McLellan

Soon it was back to business, with Neil Ritson, executive director of Solo Oil, taking to the stage. It is not the first time Ritson has appeared at oilbarrel.com; he has previously had outings as the boss of Regal Petroleum and more recently of Leni Gas & Oil. Solo is something of a part-time job but it’s certainly one that provides Ritson with a nice contrast to the oilfield rehabilitation projects that take up his time at Leni. AIM-quoted Solo’s flagship project is frontier wildcatting in Tanzania, where it recently participated in the Ntorya-1 gas strike.Solo has a 25 per cent stake in this Aminex-operated project, an equity level that suits Solo’s comfort zone. “We invest in oil and gas projects and deliberately choose not to operate,” explained Ritson. “We exploit the knowledge and skills of the current operator. We’re definitely table top, not on the ground.”The aim, said Ritson, was to leverage the company’s capital to crystallise value for shareholders. He believes the Ruvuma Basin project neatly exemplifies this strategy. The company farmed in for a 12.5 per cent stake in 2010, paying a 50 per cent premium to participate in the Likonde-1 well. This wildcat wasn’t a commercial discovery but it did deliver evidence of a working – and highly pressured – hydrocarbon regime (it was abandoned for safety reasons). “We increased our equity to 18.75 per cent and then 25 per cent through the progressive exit of Tullow [the former operator] at virtually no cost,” said Ritson. Tullow exited before the Ntorya-1 well was deepened to find gas, leaving Solo with 25 per cent of a well that flowed 20 million cubic feet per day plus 139 barrels per day of condensate from just a 3.5 metre perforation. Solo believes the well was drilled on the edge of a much larger accumulation, with the current reserve estimate of 178 BCF possibly just a fraction of the possible 990 BCF sitting updip. This is, of course, dwarfed by the massive volumes of gas being found in the deep offshore but Ritson pointed out that the Solo/Aminex project has a distinct advantage over the 50 TCF gas clusters being found by the likes of Anadarko, ENI and BG. “We are onshore, these wells cost about US$10 million and we are close to infrastructure,” said Ritson. “Our cost structure makes these volumes very attractive and we will have early mover advantage to put this into a pipeline.”This is key; the acreage sits at the mouth of a proposed new pipeline being built by Chinese money that will connect to energy-hungry customers in Dar es Salaam. Solo reckons there’s unfilled demand for at least 500 million cf/d in the Dar es Salaam region – and the timeline for the construction and commissioning of the new pipeline mirrors that for any likely development of Ntorya. And Ntorya could be just the beginning, with independent consultants suggesting the PSC could host 5.75 TCF of gas (1.5 TCF net to Solo). The partners are keen to acquire further seismic before drilling in these frontier lands. The plan is to acquire 890 km of 2D later this year ahead of drilling two exploration wells in the second half of 2013 and an appraisal well at Ntorya. To fund this, Solo and Aminex are opening a joint data room to find a farm-in partner. They are offering 40-50 per cent of the equity and operatorship to attract a partner prepared to fund an active work programme.

Solo isn’t just about frontier exploration, however. The AIM-quoted small cap is also seeking to build early cash flows through an enhanced oil recovery project in Ontario, Canada – although the cash hasn’t been as early as first hoped, admitted Ritson. Solo holds a 28.56 per cent interest – with an option to increase to 38.1 per cent - in a project targeting Ordovician-aged shallow reefs. These have the advantage of being easily identifiable on seismic but are shallow and low porosity so recovery rates are in the single digits. The plan therefore is to repressurise these low energy reservoirs by pumping in gas, either from other wells on the concession or buying it in from the local utility (gas prices are depressed in Canada). Ritson said progress has been slower than hoped as the operator, Reef Resources, sought the right engineering solution but they were now at a point where the first reef, Ausable, could be pumping significant amounts of oil, around 500 bpd come early 2013. “Once we have the engineering template we can roll this out to a number of other Ordovician reefs,” said Ritson. “There’s no exploration risk, we are just taking the engineering solution and repeating it.”

The company is keen to add further projects to the portfolio – again taking on non-operator roles where it can leverage its capital – but this is unlikely to be for at “least another three months” when a successful farm-out in Tanzania could trigger a rethink on the current low share price.

Encouraging ..methinks!

Skyhigh..yes i would say very encouraging, they should be putting an update
out on canada anytime now also as its two months since they said they started
full scale operations.Interesting times ahead here i think and with the tanzania
farm out obviously in progress i can see some good things here.

IMVHO

From FT today:
"Quoting local media, Upstream today reported that Tanzania’s Resource Minister has ordered a review of all existing oil and gas exploration agreements in the country by 30th November. Tanzania’s Guardian on Sunday newspaper reported that Sospeter Muhongo told the newly appointed Tanzania Petroleum Development Corporation (TPDC) board members that all 26 contracts needed to be reviewed.
Tanzania’s licences encompass a mix of vintages and geography’s including a number of older production licences located along the coast held by Orca, Aminex, etc as well as the higher profile offshore blocks held by Ophir, BG, Statoil et al, and newly awarded onshore acreage held by Heritage. Players in the region say that the minister’s focus is on making certain that the companies deliver on licence commitments."

Harry... I think the purpose of the review is to ensure the TPDC gets a stake in the last big blocks when they come up for bidding next year.Tanzania is advancing so fast in oil and gas discoveries that it would make sense for them to catch breath.Ophir are currently drilling a step out well in tanzania from their recent large discovery.

Thought this was an interesting comment by neil ritson in todays oil barrel report

"The company is keen to add further projects to the portfolio – again taking on non-operator roles where it can leverage its capital – but this is unlikely to be for at “least another three months” when a successful farm-out in Tanzania could trigger a rethink on the current low share price."

I think the purpose of the review is to ensure that all participants were, are and will be paying enough tax to keep the Tanzanian government happy, which is a minefield in itself!

harry..aside from tanzania dont forget its been two months now since they went
into full scale production in Ontario,could get an update anytime on that.Looks to
be a solid play that one IMVHO .

Reef resources currently up 25% on the TSX

Interesting as its been quiet there for sometime

Interesting post over on iii ( tanzania )


'Using some very rough calculations using the £1,200,000,000m Cove was bought for and Solo’s £11.47m market cap, take the high range Cove estimates to be 5,244,500MMcf and Solo’s Ntorya discovery as 178,000MMCF. Divide 1,200,000,000 by 5,244,500 and you get Cove’s per TCF value as £228.8m. Then divide this by 1000 and multiply by the find of 178bcf. Theoretically this places the value of the Ntorya discovery at £40.7264m of which £10.1816m is to Solo (almost entirely its market cap). If you then take the low range TCF estimates for Solo you get a value of £74.68m for the Ntorya discovery of which £18.67m would be Solo’s.'

This is very impressive since this only factors in Ntorya. In reply to my article NR commented that even this was undervaluing SOLO. In precise words: 'the unit costs of an LNG scheme (for the Cove gas) are one to two orders of magnitude higher than the onshore equivalent costs of development'

jackson,certainly an eye opener...just checked the post out and the article and
must say it looks very encouraging.